Prices of top-rated municipal bonds finished mostly steady on Wednesday, as a wave of new issue supply washed over the market, topped off by four competitive sales totaling almost $900 million from the state of Washington.
JPMorgan Securities won Washington's $443.83 million of Series 2015A-1 various purpose general obligation bonds with a true interest cost of 3.60%. The bonds were priced as 5s to yield from 1.55% in 2021 to 3.24% in 2040. JPMorgan also won the $60.57 million of Series 2016T GO taxable bonds with a TIC of 1.53%. The bonds were priced at par to yield from 0.36% in 2016 to 2.02% in 2021.
Bank of America Merrill Lynch won the $193.78 million of Series R-2016A various purpose GO refunding bonds with a TIC of 1.59%. The issue was priced as 5s to yield from 0.17% and 0.24% in a split 2016 maturity to 2.11% in 2024. BAML also won the $189.34 million of Series 2016B motor fuel tax GOs with a TIC of 3.49%. The issue was priced as 5s to yield from 0.25% in 2016 to 3.24% in 2040.
All of the issues were rated Aa1 by Moody's Investors Service and AA-plus by Standard & Poor's and Fitch Ratings.
Including this week's issues, the Evergreen State has sold about $41 billion of debt since 1995, with the biggest offerings coming in 2010 and 2012 and the lowest issuance in 1996 and 1998.
RBC Capital Markets priced for retail investors the state of Connecticut's $847.67 million of Series 2015A and Series 2015B special tax obligation bonds for transportation infrastructure purposes.
The $700 million of Series 2015A bonds were priced to yield from 0.92% with a 5% coupon in 2018 to 3.58% with a 4% coupon and 3.28% with a 5% coupon in a split 2035 maturity. The 2016 and 2017 maturities were offered as sealed bids; no retail orders were taken in the 2026-2029, 2031, or 2033-2034 maturities. The $147.67 million of Series 2015B refunding bonds were priced to yield from 0.92% with a 3% coupon to 2.70% with a 5% coupon in 2027.
The bonds, scheduled to be priced for institutions on Thursday, were rated Aa3 by Moody's and AA by S&P and Fitch.
Barclays Capital priced Miami-Dade County Educational Facilities Authority, Fla.'s $400 million of Series 2015A tax-exempt revenue and revenue refunding bonds for the University of Miami.
The issue was priced to yield from 3.42% with a 5% coupon in 2030 to 3.70% with a 5% coupon in 2035; a 2040 maturity was priced as 5s to yield 3.87%, a 2041 maturity was priced at par to yield 4.25% and a split 2045 maturity was priced as 4s to yield 4.35% and as 5s to yield 3.94%. The bonds were rated A3 by Moody's and A-minus by S&P.
JPMorgan priced the Greater Orlando Aviation Authority, Fla.'s $216.93million of airport facilities revenue bonds subject to the alternative minimum tax.
The bonds were priced to yield from 0.43% with a 2% coupon in 2016 to 3.60% with a 5% coupon in 2035; a 2040 split maturity was prices as 4s to yield 4.15% and as 5s to yield 3.75; a 2045 maturity was priced as 5s to yield 3.82%. The issue was rated Aa2 by Moody's and AA-minus by S&P and Fitch.
JPMorgan also priced the Board of Regents of the University of North Texas System's $105.26 million of Series 2015A revenue financing system refunding and improvement bonds.
The issue was priced as 2s to yield 0.17% in 2016 and as 5s to yield from 0.59% in 2017 to 3.28% in 2037; a 2040 maturity was priced as 5s to yield 3.37% and a 2045 maturity was priced as 5s to yield 3.44%. The bonds were rated Aa2 by Moody's and AA by Fitch.
On Tuesday, JPMorgan won Collierville, Tenn.'s $111.81 million of general obligation bonds with a true interest cost of 3.38%. The issue was rated triple-A by Moody's.
Citigroup priced the Contra Costa Transportation Authority, Calif.'s $167.66 million of limited tax Series 2015A sales tax revenue bonds. The issue was priced as 2s to yield 0.45% in 2017 and to yield from 1.32% with 2% and 5% coupons in 2021 to 2.89% with a 5% coupon in 2034. The bonds were rated AA-plus by S&P.
Goldman Sachs priced the San Diego Unified School District, Calif.'s $154.36 million of Series 2015 GOs. The $75.4 million of taxable Election of 2012 Series D dedicated unlimited ad valorem property tax bonds were priced at par to yield 0.45% in 2016. The $78.96 million of Election of 2012 Series E dedicated unlimited ad valorem property tax bonds were priced as 3s and as 4s to yield 0.57% in a split 2017 maturity.
Ramirez is set to price the Massachusetts Bay Transit Authority's $280 million of Series 2015 A and B senior sales tax bonds for institutions on Thursday. The issue is rated Aa2 by Moody's and AA-plus by S&P.
Since 1995, MBTA has sold about $10.7 billion of debt. The years of 2004 and 2005 saw the highest issuance with $1.6 billion and $1.3 billion, respectively. The MBTA did not come to market at all in 2001, 2011 or 2013.
Secondary Trading
The yield on the 10-year benchmark muni general obligation on Wednesday finished steady from 2.03% on Tuesday, while the yield on the 30-year GO was unchanged from 3.04%, according to the final read of Municipal Market Data's triple-A scale.
Treasury prices were mostly lower on Wednesday with the yield on the two-year Treasury note remaining unchanged from 0.64% on Tuesday, while the 10-year yield rose to 2.07% from 2.05% and the 30-year yield increased to 2.88% from 2.86%.
The 10-year muni to Treasury ratio was calculated on Wednesday at 98.6% versus 98.2% on Tuesday, while the 30-year muni to Treasury ratio stood at 105.6% compared to 106.2%, according to MMD.
